what investors need to know about research and inspiration in the covid-19 era

Businesses achieve prominence through groundbreaking ideas – innovations that fundamentally alter established markets. Apple revolutionized technology by recognizing the demand for a portable personal computer that was both aesthetically pleasing and user-friendly.

The foundation for these breakthroughs is diligent research. In today’s business landscape, spontaneous “eureka” moments are uncommon; successes like those of the iPhone and PayPal are the result of innovative concepts combined with thorough investigation. While ideas may still arise unexpectedly, significant progress typically stems from extensive market analysis, A-B testing, and similar methodologies.

Predictably, the pandemic has accelerated the shift to online research methods. Organizations that successfully adapt to conducting research remotely will achieve greater success and profitability compared to those that continue to struggle. Even as the pandemic subsides, remote research will likely remain the standard, as its impact on our lives will persist for months or even years to come. For those evaluating technology companies, well-developed remote research capabilities represent a crucial, yet often underestimated, asset and a reliable indicator of overall organizational health.

The pandemic has presented substantial difficulties for effective corporate research. Traditionally, most researchers – including myself – have relied on direct, in-person interactions with both existing and prospective customers. As we move further into 2021, organizations must demonstrate how they have overcome the challenges of remote research. Having had ten months to adapt, they should either have implemented solutions or possess a clear plan for doing so.

Investors, leadership, and teams at all levels must recognize – and insist upon – the importance of robust research practices. The financial implications are significant. No company wants to repeat the fate of Quibi, where comprehensive consumer research could have dramatically altered the outcome.

There are effective ways to replicate successful research techniques in a digital environment. Leaders should inquire about the tools researchers are utilizing and the innovative strategies they’ve developed to meet new challenges. Are researchers employing collaborative platforms to foster deeper understanding and connection with individuals? For instance, I often request photo collections depicting a person’s home environment to gain a better understanding of their lifestyle. The next crucial question is how the research team is leveraging these tools. Are they simply delivering presentations, or are they using them to facilitate dynamic, open-ended conversations? I frequently use a digital whiteboard to add a personal element through real-time drawing and diagramming, which can encourage openness and rapport.

Furthermore, leaders must ensure that research is integrated into the design process, despite the collaborative hurdles presented by the pandemic. Researchers and the design team should address questions such as:

• Is research treated as a mere formality, or do designers and developers consistently refer to its findings?
• Is the research team appropriately positioned within the organization, ideally reporting to the chief product officer and regularly sharing insights with the executive team to enhance understanding of consumer needs?
• Are researchers empowered to explore the innovative ways consumers are adapting to the current, unusual circumstances?
• Are designers and developers utilizing research findings as a springboard for creativity, and are they encouraged to explore new design approaches?

In every instance, research should be a fundamental component of informed product decisions and sound digital product design and development. If it is not, organizations should prioritize changes in 2021.

This assertion is supported by empirical evidence. According to industry research conducted by InVision, only 10% of 2,300 teams surveyed employ the most advanced research practices, which correlate with faster time-to-market, increased revenue, and higher valuation. A mere 7% report actively incorporating customer feedback and co-creating products with their customers – both vital research practices.

To state this more directly, it is probable that many companies receiving investment are not fully leveraging the potential of research. Fewer than 10% of the thousands of teams surveyed prioritize design research. This indicates that fewer than 10% of organizations are well-equipped to navigate the challenges of remote research, adapt to evolving realities, and thrive during this period of unprecedented change. In the context of a pandemic, this represents a significant issue.

Even beyond the COVID-19 pandemic, companies that prosper – or even maintain viability – will be design-focused and digitally driven. They will generate more revenue, engage with customers, and gather new research insights through digital channels. In this evolving economy, technical and engineering expertise are essential, but they are rendered ineffective without a deep understanding of consumer desires. They are useless without feedback. They are meaningless without the insights that fuel innovation.

They are ineffective without a sophisticated design process that utilizes research to validate ideas, gain understanding, and transform initial concepts into tangible realities.